Stamp duty rates: How much is stamp duty in the UK? Tax is payable in addition to mortgage

STAMP duty is a tax which is payable to the government upon buying a property, thus is separate to mortgage payments - which are paid to the lender. The rates and whether they’re a first-time buyer or not will affect how much stamp duty a buyer is required to pay.

Buying a house can, unsurprisingly, seem like an expensive affair. If a person is getting a mortgage, coming up with a deposit in order to access a loan could take some saving. When it comes to purchasing a property, Stamp Duty Land Tax (SDLT) may be payable. This tax, paid to the Government, must be paid to the solicitor, who will then pay it to HM Revenue and Customs (HMRC) when the sale completes.

You can claim a discount (relief) so you do not pay any tax up to £300,000 and five per cent on the portion from £300,001 to £500,000

Government website

In the Autumn 2018 Budget, the Chancellor of the Exchequer extended the first-time buyers’ relief to include those buying shared ownership properties valued up to £500,000.

“You can claim a discount (relief) so you do not pay any tax up to £300,000 and five per cent on the portion from £300,001 to £500,000,” the Gov.uk website states.

For those purchasing an additional property, there is usually a higher stamp duty rate or three per cent on top of the normal rate - although this higher rate is not required for those who exchanged contracts ahead of November 26, 2015.

There is more information on the government website which explains the rates for non-first-time buyers looking to buy a freehold or leasehold property.